India Acquiring a Taste for Functional Beverages

Water is now more than just a thirst quencher, and dairy drink's more than flavoured milk. They can now rejuvenate you and boost your performance in the form of energy drinks, vitamin water, fortified milk and yogurt, and enhanced iced tea, among others.

A slew of companies, including Groupe Danone, Dabur, PespiCo, Coca-Cola, Amul, Britannia and Rasna, are betting on such functional beverages to woo the young, health-conscious Indian consumer.

"Functional beverages is an emerging segment and it pays to enter these categories early," says Sunil Duggal, CEO of Dabur India, which plans to launch value-added beverages on the health under its Real brand. "Some of the products will be launched as soon as the second half of the fiscal," he says.

French company Groupe Danone, which makes bottled water Qua in a joint venture with Narang Group, is now test-marketing B'lue, an aqua restorative drink, in Pune.

"The 18-35 age group is willing to try something new. They are keen on products that are modern and stylish. The first step of success is to surprise them," says Pierre Betat, country manager of Danone-Narang Beverages.